Jamaican Teas Raises Over J$100 Million In Bond Offer. Fails To Meet J$200 Million Target

Stocks and Securities Ltd announced earlier this week that they had successfully helped Jamaican Teas Ltd to raise over J$100 million from its corporate bond offering, a little over 50% of their J$200 million target.

One of Jamaican Teas’ Products – Caribbean Dreams Cerasee Tea

We previously wrote about the offer;

Jamaican Teas is seeking to raise J$200 million by issuing a 4 year note that will mature on November 06, 2017. The bond will have a fixed rate of 8.50% for the first 2 years after which the rate will be variable for the next 2 years. For the last two years interest will be calculated at a floating rate equivalent to 180 day weighted average Treasury Bill Yield + 2.50%. Interest will be paid monthly on this bond. Additionally, this note has a call option and commencing on the second anniversary of the issue of the Note, the company will have the right, at its option, to redeem the note, in whole at any time or in part from time to time.

Stocks and Securities Ltd, broker for this deal announced the closing of Jamaican Teas Ltd’s corporate note on November 7, 2013, which is to be traded on the Jamaica Stock Exchange (JSE).

Their release states that;

The Invitation garnered over 80 applicants with the majority fitting well with the income objective of our SSL client portfolios advised by our SSL financial advisors for financial planning and money management. It was a raise of over J$100 million to be employed in the build out of JTL’s St Thomas development and debt restructuring. The Note is a four year instrument fixed at 8.5% p.a. for the first two years.